NEW YORK Steel
Dynamics Inc. (SDI) expects higher earnings in the third
quarter marked by increased margins in its sheet division,
higher volumes in its long products sector and strong end
markets, the company said Sept. 17.
The Fort Wayne,
Ind.-based producer issued a third-quarter earnings guidance of
21 to 26 cents per diluted share compared with second-quarter
earnings of 13 cents per diluted share and 6 cents per diluted
share in the same period last year.
An increase in overall
shipments and average metal spread are expected to boost
profitability in the quarter, SDI said.
profitability from the companys sheet operations is
related to both higher volume and metal spread," the company
said. "Increased profitability from the long products
operations is expected to benefit from higher volume, more than
offsetting metal spread declines caused by decreased product
SDI continued to
underscore the strength in the automotive and manufacturing
markets, adding that improvement in the residential
construction market has led to positive growth for the
companys painted and Galvalume sheet products.
nonresidential construction market has yet to see the same type
of growth, a "cautiously optimistic yet favorable outlook" for
the sector is supported by gradual improvement in
construction-related steel product orders. This includes
structural steel and fabricated joist and decking products,
which should help SDIs fabrication operations in the
However, SDI expects
lower third-quarter results at its OmniSource Corp. subsidiary
as increases in ferrous and nonferrous scrap shipments are
expected to be offset by decreased ferrous scrap margins. It
also anticipates losses at its Minnesota operations.